From a logical point of view, it seems like a waste of time and investment to see the future of cars running diesel engines. However I must note that in Europe nearly 50% of the new car market belongs to Diesel cars and Hybrids are struggling, while in the states Diesel hasn't really taken off while Hybrid is on the way up. Here in Australia, we are still very much reluctant to pick either side, the Toyota Prius is still selling well while more and more Diesel cars are coming down under.
So who will win? Only time will tell but it does seem a little odd to try to solve the world Fuel crisis by using a different type of Fuel while Hybrid technology tries to move away from the problem in the first place. If I was to take a bet on the winning technology, I'd go with Hybrid without a doubt.